The present invention relates to a costing system and method, and particularly to a costing system and method utilizing a model providing multiple costs for a single production part.
In current use, companies endeavor to reduce production costs and strengthen competitive ability. In addition to cost management of materials and manpower, cost valuation of the production is also a significant base of corporate quotation and pricing, such that a precise costing system is critical. Without an accurate costing model for the costing system, costing and pricing results cannot reflect real margins and benefits.
FIG. 1 shows an example of a conventional costing model, including three stages X, Y and Z, having respective operating costs. Parent-child relationships between these stages must be defined in the costing system in advance. In the example, stage X is the parent stage for stage Y, stage Y is the parent stage for stage Z, and each product is processed from stage X to stage Z. The cost of part X (semi-finished goods) (CX) is the operating cost for stage X, the cost of part Y (CY) is the sum of the operating costs for stage Y and its parent cost (CX), and the cost of part Z (CZ) is the sum of the operating costs for stage Z and its parent cost (CY).
However, for some specific industries, such as semiconductor industry, there are more complicated business requirements and models therein. One business model of the semiconductor industry is “build to order”, in which the IC (Integrated Circuit) foundry must fabricate products of different designs and processes, and according to specific client requirements. For example, semiconductor products may be processed through three process stages of wafer fabrication, testing, and packing. In one case, clients may request the IC foundry to manufacture their product designs without any further conditions, such that the IC foundry fabricates wafers according to client product design, tests the wafers, and divides and packs the wafers to IC products internally or by subcontracting. In another case, the clients may only ask the IC foundry to perform the testing or other process stages. The workpiece can, accordingly, be received at any stage, be partially or fully finished goods, and fabricated internally or outsourced. Production costs differ according to various production conditions, and thus, conventional costing models with one cost for a single production part cannot provide precise costing analysis to fulfill business requirements for companies with complicated business models.